UPSC Essentials | Daily subject-wise quiz : Economy MCQs on alternative investment funds, CPI, cotton and more (Week 85)

1. It measures changes implicit clip successful the wide level of prices of goods and services that households get for consumption.

2. It is wide utilized arsenic a macroeconomic indicator of inflation.

3. It is utilized for indexing dearness allowance to employees for increases successful prices.

How galore of the statements fixed supra are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— In October, the Consumer Price Index (CPI) roseate to a 14-month precocious of 6.21%, up from 5.5% successful September. The RBI has been concentrating connected maintaining retail ostentation astatine 4% connected a semipermanent basis.

— Consumer Price Indices (CPIs) way changes successful the wide level of prices for goods and services purchased by households for consumption. Hence, connection 1 is correct.

— CPI statistic are wide utilized arsenic a macroeconomic indicator of inflation, arsenic a instrumentality for governments and cardinal banks to negociate ostentation and show terms stability, and arsenic deflators successful nationalist accounts. Hence, connection 2 is correct.

— CPI is often utilized to scale employees’ dearness allowances successful effect to terms increases. The CPI is consequently regarded arsenic 1 of the astir important economical indicators. Hence, connection 3 is correct.

— Since January 2011, the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released Consumer Price Indices (CPI) connected a basal of 2010=100 for each of India and States/UTs, separately for agrarian and municipality areas, and combined each month.

Therefore, enactment (c) is the close answer.

(Other Source: http://www.data.gov.in)

QUESTION 2

Consider the pursuing statements astir Special Non-Resident Rupee Account (SNRR account):

1. Opening of SNRR accounts by Pakistan and Bangladesh nationals and entities incorporated successful Pakistan and Bangladesh requires anterior support of the Reserve Bank.

2. The concern of the relationship holder tin run nary longer than 4 years.

3. SNRR accounts tin beryllium current, savings, recurring oregon Fixed Deposit.

Which of the statements fixed supra is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 3 only

(d) 1 only

Explanation

— Any idiosyncratic nonmigratory extracurricular India with a concern involvement successful India tin unfastened a Special Non-Resident Rupee Account (SNRR) with an authorised trader to behaviour morganatic rupee transactions nether the provisions of the Act, rules, and regulations enacted thereunder.

— The opening of SNRR accounts by Pakistan and Bangladesh nationals, arsenic good arsenic entities incorporated successful Pakistan and Bangladesh, requires anterior Reserve Bank approval. Hence, connection 1 is correct.

— SNRR Accounts are non-interest bearing. Hence, connection 3 is not correct.

— Permissible Transactions: Debits and credits that are specific/incidental to the relationship holder’s anticipated concern activity.

— Tenure: Concurrent with the contract/duration of operation/business of the relationship holder, and nary longer than seven years, unless approved by the Reserve Bank. Hence, connection 2 is not correct.

Therefore, enactment (d) is the close answer.

(Other Source: website.rbi.org.in)

QUESTION 3

Which of the pursuing statements is not close with notation to fabric successful India?

(a) It has a astir two-thirds stock of India’s full textile fibre consumption.

(b) Leaf miner is simply a monophagous pest that feeds chiefly connected cotton.

(c) It is simply a semi-xerophyte.

(d) It tin grip temperatures up to 43 degrees Celsius.

Explanation

— One of India’s astir important currency crops and sources of fibre, fabric is captious to the nation’s concern and cultivation economies. Cotton has a astir two-thirds stock successful India’s full textile fibre consumption.

— Ten large cotton-growing states successful India are divided into 3 zones: north, centre, and south. Rajasthan, Haryana, and Punjab comprise the North Zone. Gujarat, Maharashtra, and Madhya Pradesh are each successful the cardinal zone. The South Zone comprises the states of Tamil Nadu, Telangana, Karnataka, and Andhra Pradesh.

— Cotton crops are peculiarly susceptible to pests and illnesses. The pink bollworm (PBW) is simply a monophagous pest that chiefly consumes cotton. The Bt poisons were primitively intended to defender against some Helicoverpa and PBW caterpillars, which burrow into the fabric plant’s bolls oregon fruits and nutrient lint and seeds.

— Cotton, a semi-xerophyte, is grown successful tropical and subtropical climates. A minimum somesthesia of 15 degrees Celsius is indispensable for optimal germination successful the field. The optimum somesthesia for vegetative maturation is 21-27 degrees Celsius, and it tin grip temperatures up to 43 degrees Celsius; however, temperatures beneath 21 degrees Celsius are damaging to the crop.

Therefore, enactment (b) is the close answer.

(Other Source: http://www.nfsm.gov.in)

QUESTION 4

With notation to the inflation, see the pursuing statements:

1. It is defined arsenic the complaint of summation successful prices implicit a fixed play of time.

2. An unstable ostentation enhances the purchasing powerfulness of the people.

3. The authorities has fixed the RBI the people to support ostentation successful the 12-16 per cent band.

Which of the statements fixed supra is/are not correct?

(a) 2 only

(b) 1 and 2 only

(c) 3 only

(d) 2 and 3 only

Explanation

— “Stable inflation, often known arsenic terms stability, is beneficial to some individuals and the economy. It serves arsenic a instauration for semipermanent growth, increases people’s purchasing power, and creates a unchangeable clime for investment,” Das stated astatine the High-Level Policy Conference of Central Banks from the Global South. Hence, connection 2 is not correct.

— The authorities has acceptable a people for the RBI to support ostentation between 2 and 6 per cent. The RBI has been concentrating connected maintaining the CPI astatine 4% connected a semipermanent basis. Hence, connection 3 is not correct.

— Inflation is defined arsenic the complaint astatine which prices summation implicit time. Inflation is often defined arsenic a wide measure, specified arsenic an summation successful full prices oregon the outgo of surviving successful a country. Hence, connection 1 is correct.

— The Governor noted that terms stableness is arsenic important arsenic maturation successful allowing economical agents to program ahead, reducing uncertainty and inflation-risk premiums, and encouraging savings and investment. All of these factors volition summation an economy’s imaginable maturation rate.

Therefore, enactment (d) is the close answer.

QUESTION 5

With notation to the alternate concern funds (AIFs), see the pursuing statements:

1. It means immoderate money established oregon incorporated successful India which is simply a privately pooled concern vehicle.

2. Banks and NBFCs, which are Regulated Entities (RE) nether the Reserve Bank of India (RBI), cannot put successful units of AIFs.

Which of the statements fixed supra is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— The Reserve Bank of India (RBI) has directed banks, non-banking fiscal companies (NBFCs), and different lenders not to put successful immoderate strategy of alternate concern funds (AIFs) that has downstream investments successful a debtor company.

— An AIF means immoderate money established oregon incorporated successful India which is simply a privately pooled concern vehicle, and which collects funds from blase investors, whether Indian oregon foreign, for investing it successful accordance with a defined concern argumentation for the payment of its investors. Hence, connection 1 is correct.

— Banks and NBFCs, which are Regulated Entities (RE) nether the Reserve Bank of India (RBI), make investments successful units of AIFs arsenic portion of their regular concern operations. Hence, connection 2 is not correct.

— Venture superior funds, angel funds, infrastructure funds, backstage equity funds and hedge funds, among others, are AIFs.

Therefore, enactment (a) is the close answer.

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 85)

Daily subject-wise quiz — Polity and Governance (Week 85)

Daily subject-wise quiz —  Science and Technology (Week 85)

Daily subject-wise quiz — Environment and Geography (Week 85)

Daily subject-wise quiz — Economy (Week 84)

Daily subject-wise quiz – International Relations (Week 84)

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